Comverge secures $25M financing

East Hanover, N.J.-based Comverge (Nasdaq: COMV), a smart grid company, said it has secured a $25 million senior credit facility with Silicon Valley Bank.

The credit includes a five-year, $15 million loan that is expected to be used to repay most of Comverge's existing $19.8 million in subordinated convertible notes, which mature April 1. Those notes were issued as part of the 2007 acquisitions of Enerwise Global Technologies and Public Energy Solutions (see Comverge buys Public Energy Solutions for $13.4M).

The balance of the senior credit facility is a $10 million revolving line of credit with a three-year term for working capital and letters of credit.

Comverge CEO Robert Chiste said the financing enhances liquidity in the challenging credit market.

"This credit facility, combined with our strong cash position and our available financing from GE Capital, provides for over $85 million of cash and financing to fund growth in our business over the coming years," he said in a release.

GE Capital Equity Investments, part of Fairfield, Conn.-based General Electric (NYSE: GE), issued a $40 million senior credit facility to Comverge in January 2007 (see $1.3 billion goes to waste).

Comverge manages more than 2,200 megawatts of clean energy capacity.

In September, Comverge signed a long-term deal with Arizona Public Service to provide on-demand, load reduction services (see Comverge in Arizona demand response contract). Comverge said that 15-year contract represents over $100 million in potential revenues over the term of the agreement.